Effect Of Market Concentration Research Articles

Competition in Retail Gasoline Markets

We study the relationship between prices and market structure in geographically isolated markets that are exposed to large demand shocks. The temporal variation in market size allows us to overcome the classical endogeneity bias in standard concentration-performance regressions. We find evidence of local market power in gasoline markets due to product differentiation. Additionally, the high margins that characterize concentrated markets dissipates quickly with the number of competitors. Ignoring market structure endogeneity leads to underestimating the effect of market concentration on prices between 55 and 70 percent.

Market-power versus cost-efficiency in Thailand's banking sector in the post-crisis period (1998–2011)

The degree of competition and effect of market concentration on interest rate margins in the banking sector of Thailand are estimated using the new empirical industrial organization model. We find that the collusive behavior and the market power of banks intensified during 2005–2011, after the East Asian financial crisis. Although the estimated benefit of scale economies resulting from increased concentration is statistically insignificant, its estimated impact would offset the unfavorable effect of higher market-power associated with higher concentration.

Effects of Market Concentration in Theatrical Distribution: The Case of the Big Five Western European Countries

The globalization phenomenon has reopened the debate on the concentration of media and entertainment industries, particularly in the film distribution market. Some authors consider that the dominant position of U.S. companies comes from the higher identification of American films with the tastes of the European audience. Others argue that the Hollywood success is mainly due to its control of the distribution system. U.S. films account for an average of 63.4% of the European market. In return, European films represent 3.6% of the North American box office. There are around 450 active film distribution companies in Europe, the majority of them being nationally controlled firms, and only a small percentage of them belong to U.S. majors. Nevertheless, these U.S. subsidiaries are ranked among the top 10 leading film distributors in Europe according to market share. This article attempts to make a further contribution in market concentration analysis, looking at the situation of film distribution in the 5 biggest Western European countries. It also explores if the success of American companies is due to their management and marketing skills or if, by the contrary, it is the consequence of their dominant market positions.

Evolution of shipping networks

Abstract Maritime transport is a key facilitator of global trade. Competitiveness in world trade depends, among other factors, on a country’s level of connectivity and its integration in the global container liner service network. Recent investigations show that spatial frictions are considerably influenced by the level of connectivity rather than the pure notion of distance. Technological advances, i.e. increases in ship size, demand growth in trade volumes and concentration in the liner shipping industry, are constant drivers of change in the structure of liner services.What has been the effect of market concentration in the liner shipping industry on emerging markets in terms of service levels and competition? Based on the analyses of the evolution of liner shipping services in the period from 2000 to 2009, this research addresses the expansion of hierarchical liner service network structures and market concentration, focussing on South America as an example of emerging markets. The results identify the effect of economic downturns on liner shipping networks in network peripheral markets and the potentially detrimental effects on the competitiveness of countries and regions beyond the general challenges that come from a less favourable economic climate.

Market concentration and new venture survival in static v dynamic industries

We propose that the effect of market concentration on firm survival is different according to whether an industry is static (low entry and exit) or dynamic. In our empirical analysis, we find support for this hypothesis. Industry concentration rates reduce the survival of new plants, but only in markets marked by low entry and exit rates. Specifically, a 10% increase in the five-firm concentration ratio in a dynamic market raises the survival rate of new ventures by approximately 2%. Our results have implications for the antitrust/competition law indicating less need for regulation of dominant firms in dynamic industries characterised by high entry and exit rates. We use a unique dataset comprising the population of new ventures that enter the UK market in 1998.

Is lack of retail competition in the grocery sector a public health issue?

The economic implications of a lack of competition in the grocery retail sector are hotly contested. However, there are also significant health implications of such anti-competitive practices that seldom receive attention. This paper hopes to draw attention to the potential public health issues that arise as a result of lack of competition in the grocery retail sector. Relevant supporting literature was reviewed to explore the possible effects of market concentration on various health outcomes. High retailer concentration may adversely affect affordability, accessibility, quality, and choice of healthy food options to consumers. In turn this has significant implications for public health. Unless these upstream factors are addressed through the development of healthy competition, policy public health programs aimed purely at encouraging the public to consume higher quantities of healthful foods may be rendered ineffective.

La regulación industrial y la transferencia internacional de tecnología en España (1959–1973)

This work analyses the relationship between technological change, firm size and market structure, applied to the Spanish economy during 1959–1973. Despite the voluminous literature, the theory yields ambiguous predictions about the effect of market concentration on innovative activity. My results support Schumpeter's hypothesis that innovation increases with market concentration. This empirical work has also found that other variables, such as the extent of product differentiation, can affect innovative activity.

Price Discrimination in the Airline Market: The Effect of Market Concentration

We test the hypothesis that price discrimination increases with competition in the airline market. Using a large cross section of tickets offered by several carriers on various routes, we approximate price discrimination with marginal implicit prices of ticket restrictions that carriers typically use to price discriminate: Saturday-night stayover re-quirements and advanced-purchase discounts. We find that the restrictions are associated with lower airfares, but that the discounts are smaller on routes with higher market concentration. The results suggest that price dispersion attributed to ticket restrictions increases as markets becomemore competitive.

The Effect of Market Concentration on Lamb Marketing Margins

AbstractThe national four-firm concentration ratio in the lamb slaughtering and processing industry increased from 55 percent in 1980 to 70 percent in 1992. The effect of increasing lamb packer concentration on lamb marketing margins is examined. A relative price spread (RPS) model for farm-to-wholesale and wholesale-to-retail marketing margins was estimated using three-stage least squares (3SLS). The 3SLS results indicate that increased lamb packer concentration has had relatively small, positive effects on lamb marketing margins.

Modeling the Effects of Industrial Structure on Wages and Benefits

Previous research on the role of industrial structure in the earnings determination process has focused on concentration and unionization as barriers to competitive market forces. This focus has tended to discount the role of other dimensions of industrial structure in the process of earnings determination. Previous research has also been limited by a restrictive focus on manufacturing industries. This article addresses these issues by estimating a model of industrial structure and earnings that systematically considers dimensions of industrial structure other than concentration and unionization and that is estimated across all industries. The principal findings include an affirmation of the powerful roles of trade unions and government involvement in influencing both wages and benefits and the discovery of a negative effect of market concentration. These findings are interpreted within a resource perspective that views organizational structure as providing a source of potential power for both workers and owners in their struggle over improving earnings versus holding down labor costs. It is hoped that these findings will stimulate theoretical debate in this field as well as motivating the development of data sets that are more adequate for evaluating the role of industrial structure across all industries.

A Close and Skeptical Look at the Effects of Market Concentration on Economic Efficiency

A Close and Skeptical Look at the Effects of Market Concentration on Economic Efficiency

Book Review: A close and skeptical look at the effects of market concentration on economic efficiency

Book Review: A close and skeptical look at the effects of market concentration on economic efficiency